US: Experts predict a tough road for cigarette merger review

Antitrust experts are reportedly predicting a tough road ahead for the proposed acquisition of Lorillard by Reynolds American.

The merger between the two cigarette giants would combine Reynolds’ Camel brand with Lorillard’s Newport brand. Reynolds currently owns 27 percent of the market, while Lorillard controls 15 percent of the market.

According to sources, the merger could also be complicated with the involvement of British American Tobacco, though the sources did not indicate exactly what the role would be.

But reporters surveyed six antitrust experts and found that two predict the transaction to be blocked outright, while another found that while it should be blocked it could pass review.

The other three told reporters authorities would likely require concessions from the deal.

Full content: Reuters

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